Q - 1. Optimistic Managers - Social Accounting - 61 Varun Karwal (A),121 Simranjeet Kaur (B), 187 Ajaypal Singh (C)

INTRODUCTION:- (Ajaypal Singh C, 187)

Social accounting is a type of accounting that a business performs to place a value on the influence its operations have on society. It requires that enterprises look closely at all that it does and what kind of impact its activities have on people, places, and the environment. Social accounting doesn't deal with the type of assets that financial accounting does; rather, it focuses on business behaviors and what kind of impact that behavior has. Any business can undergo this type of evaluation, regardless of its size.

Social accounting, unlike financial accounting, looks to understand the contributions, or lack thereof, that businesses make to society. Consequently, social accounting often goes by the name Social and Environmental Accounting, Corporate Social Reporting, or Corporate Social Responsibility Reporting.

DISCUSSION :- (Simranjeet Kaur B, 121)

In India social accounting is not so popular but some India companies are now focusing on social responsibility and also started to make social report for calculating to total cost and benefits for performing social responsibility.

OBJECTIVES OF SOCIAL ACCOUNTING:-

Main objectives of social accounting are to help society by providing different facilities by enterprise and to record them. We can write them in following points:-

1. Effective utilization of natural resources

Main objectives of making social accounting are to determine whether company is properly utilizing their natural resources or not.

2. Help to employees

Company can help employees by providing the facility of education to children of employees, providing transport free of cost and also providing good working environment conditions.

3. Help to society

Because companies' factories spread the pollution in natural society which is very harmful for society. So, enterprise can help to society by planting the trees, establishing new parks near factory area, and also opening new hospitals.

4. Help to customers

In social accounting this is the part of benefits given by company to society if company provides goods to customers at lower rate and with high quality.

5. Help to investors

Company can help the investors by providing transparent accounting information to investors.

Because many objectives are related to safeguarding of natural resources so this accounting is also known as Social and Environmental Accounting, Corporate Social Reporting, Corporate Social Responsibility Reporting, Non-Financial Reporting, Sustainability Accounting.

CHALLENGES:-

For small, member -based community organizations and enterprises the biggest challenge is finding a way to regularly carry out social accounting with no staff, no time and no budget! It is therefore important that the social accounting process be as simple as possible so that it does not impose too heavy a burden on members.

CONCLUSION :- (Varun Karwal A , 61)

The conclusion drawn is that social accounting is not a means of, nor an alternative to, but rather a framework methodology into which impact assessment can fit. In corporate world social accounting has been one of the major stepping stones in improvement in corporate social responsibility. So lastly we can say that social accounting and audit should be an empowering process to control and maintain an organization intact.

References:-

http://www.wisegeek.com/what-is-social-accounting.htm